Scott Morrison puts bill to abolish charity regulator on backburner

Timna Jacks

Minister for Social Services Scott Morrison appears to be backing away from his predecessor's plans to abolish the well-regarded Australian Charities and Not-for-profits Commission (ACNC), amid sector opposition and an unsympathetic crossbench.

If this were to happen, it would be another failed Abbott election promise.

Chief executive of World Vision Australia Tim Costello said Morrison's decision to put the bill on hold showed the Social Affairs minister was finally listening to the people. Photo: Alex Ellinghausen

The national charity watchdog was set up by the Gillard government in December 2012 following two decades of policy advocacy by the sector, but its abolition was an election commitment of the Abbott government as part of its move to get rid of "red tape."

But in response to questions from Fairfax Media about the future of the regulator, Senator Morrison said axing the ACNC was a low priority, and he would be focusing on the new families package instead.

"My top priority is addressing the development of a families package including child care which will help parents of young children get back to work so they can better support themselves and their families.

"I have advised key stakeholders in this area I have no immediate plans to be progressing that issue while I focus on higher order priorities."

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These comments come in the same week Mr Morrison dumped the government-funded relationship counselling vouchers – another of former Social Services minister Kevin Andrews' signature policies.

Legislation to dismantle the charity watchdog and transfer its functions to the Australian Securities and Investments Commission and the ­Australian Taxation Office was debated on the second last sitting day of parliament last year, but did not go to a vote.

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In addition to Labor and the Greens, PUP, Jacqui Lambie, Nick Xenophon and David Leyonhjelm have signalled their opposition to the bill.

Moves to axe the regulator – which Fairfax Media has reported was prompted by lobbying from Cardinal George Pell's office – has been widely criticised by the charities sector, who say the body would improve transparency, by providing oversight of a sector that contributes about $43 billion to Australia's gross domestic product.

ACNC Commissioner Susan Pascoe welcomed a push to retain the body, and said uncertainty around its future has deterred charities from registering with the commission.

Ms Pascoe also said moves by other jurisdictions – including South Australia and the ACT – to streamline reporting by accepting charity reports submitted to the ACNC, rather than duplicating those at state level, had been delayed due to the bill to repeal the regulator.

Chief executive of World Vision Australia Tim Costello said Mr Morrison's decision to put the bill on ice highlighted that: "we now have a minister for social affairs listening to the sector, at last."

"I think everyone knows this was a Kevin Andrew's enthusiasm and did not have the support of the sector ... the overwhelming majority of the sector said we want this financial transparency and we are not afraid of a regulator. New Zealand has it; Great Britain has it, as with lots of European countries.

"Financial transparency is the key to confidence and cleaning up those who are shonks in the sector."

The ACNC – created after recommendations in multiple inquiries and a 2010 Productivity Commission review – was designed as a "one-stop-shop" charity regulator.

It provides information on nearly 60,000 charities, including who they benefit and where they operate and their annual revenue has revoked or removed 4000 charities since its establishment.

Community Council for Australia chief executive David Crosbie said Mr Morrison was right to reconsider the bill, and urged him to give the ACNC an opportunity to prove its worth at least until its review in 2017.

General Secretary of the Australian Catholic Bishops Conference Reverend Brian Lucas, said while the ACNC's reporting structure needed to be streamlined, citing duplications for highly regulated charities, there were "many good features of the current ACNC arrangements."

"The bishops conference has indicated to the government that it is very willing to participate in a constructive revision of the current arrangements. "

Shadow Assistant Treasurer Dr Andrew Leigh said "Minister Morrison would have Labor's full support if he opts to keep the commission and finally give the not-for-profit sector some certainty after 17 months of upheaval."

Chief executive of the Australian Council of Social Services (ACOSS) Cassandra Goldie said the commission had already provided "a vital knowledge base" on charities in Australia.